Kesko receives international recognition for encouraging suppliers to cut emissions

CDP, a global environmental non-profit organisation, annually releases a list of companies that have excelled at committing their supply chains to climate action. Kesko was one of the companies named as a Supplier Engagement Leader for the second year in a row.

Each year, the environmental organisation CDP assesses how successful companies have been in committing their suppliers to taking action to mitigate climate change. The best performing companies are included on the Supplier Engagement Leaderboard. This year the top 8 per cent of companies that gave a full response to CDP’s international climate change questionnaire were given this honour.

CDP annually collects detailed data from companies, on behalf of investors in particular, on their efforts to combat and adapt to climate change. In December 2021, Kesko was selected for the best A list in CDP’s international climate change questionnaire for the second year in a row.

Encouraging our suppliers and customers to cut emissions

In order for companies to increase the impact of their climate work, they must also encourage their partners to participate in this effort.

Kesko considers it especially important that the emissions reductions cover the entire supply chain because most of the trading sector’s emissions are generated in the primary production, manufacture, packaging, transport and use of products.

“The emissions from our own operations are related to electricity and heat used in properties and fuel consumption in transports. It is estimated that the retail sector’s own operations generate about one per cent of the total emissions of the entire value chain. That is why it is crucial for us to urge our suppliers and customers to participate in climate action,” says Riikka Joukio, EVP, Sustainability and Public Affairs at Kesko.

Kesko’s objective is to have science-based reduction targets set for two-thirds of its direct supplier emissions by 2025.

“Last year, we used the CDP Supply Chain programme to invite our suppliers to cut their emissions and report them to CDP. It’s great that, already in the first year, 65 per cent of the companies contacted responded to CDP’s extensive climate change questionnaire and reported their emissions reduction targets. This year, our aim is to encourage our supply chain to take even stronger climate action and to further increase the number of suppliers who report their emissions reductions,” Joukio says.

Customers at K Group stores are also encouraged to make more sustainable choices. The K-Ostokset service helps customers make more sustainable choices as it allows them to track the carbon footprint, domestic content and nutritional values of their grocery purchases.

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